Adler Group Sa · XETR:ADJ
Adler Group Sa — Q1 2024 Earnings Presentation
37 slides from Adler Group Sa's earnings presentation, May 28, 2024
Slide 1: Q1 Results 2024 presentation
Q1 Results 2024 presentation 28 May 2024
Slide 2: Content
Content 1 Restructuring Plan Update 2 Q1 2024 Highlights 3 Portfolio & Operational Performance 4 Financial Update 5 Guidance and Concluding Remarks 6 Appendix 2 Allee-der-Kosmonauten, Berlin
Slide 3: Restructuring Plan Update
1 Restructuring Plan Update 3
Slide 4: Restructuring Plan Update
Restructuring Plan Update Adler Group has reached a binding agreement with a group of bondholders for a comprehensive recapitalization EXTENSION OF DEBT MATURITIES ✓ RIGHT-SIZING OF CAPITAL STRUCTURE ✓ ADDITIONAL LIQUIDITY ✓ ◼ Extension and reprofiling of bond maturities ◼ Equity position significan
Slide 5: Q1 2024 Highlights
2 Q1 2024 Highlights 5
Slide 6: Q1 2024 Highlights
Q1 2024 Highlights Continued strong operational performance in Q1 2024 PORTFOLIO FINANCIAL DISPOSALS & PERFORMANCE PERFORMANCE DEVELOPMENTS 2.4% like-for-like (l-f-l) ◼ 5.1% rentalrental growth 1 1 with driven growth upcoming by ◼ Lower net NRIrental income and and negative FFOnegative 1 on the FFO
Slide 7: Portfolio & Operational Performance
3 Portfolio & Operational Performance 7
Slide 8: Berlin-anchored Yielding Asset Portfolio
Berlin-anchored Yielding Asset Portfolio Portfolio size and portfolio value remain stable in Q1 2024 Number of rental units Residential core portfolio as per March 20241 26,202 25,043 25,015 OTHER CITIES €0.6bn GAV 7,282 Berlin units Oberhausen Dec-22 Dec-23 Mar-24 Essen Duisburg Dortmund 3 | Portfo
Slide 9: No Portfolio Revaluation in Q1 2024
No Portfolio Revaluation in Q1 2024 Rental yield for assets outside Berlin remain significantly higher than yields observed in Berlin; next portfolio revaluation will be concluded in Q2 2024 Like-for-like fair value development until Q1 2024 (%)2 Rental yield (%)3 5.5% 4.9% 10.1% 3.4% 6.7% Revaluati
Slide 10: Significant Rental Growth on a Like-for-Like Basis
Significant Rental Growth on a Like-for-Like Basis Like-for-like rental growth mainly driven by indexation of in-place rent for existing tenants and by vacancy reduction Average rent (€/sqm/month) Like-for-like rental growth (%)2 Detailed breakdown of the like-for-like rental €7.25 growth as per Mar
Slide 11: Financial Update
4 Financial Update
Slide 12: Development of GAV in Q1 2024
Development of GAV in Q1 2024 Portfolio GAV remains unchanged in Q1 2024 GAV excl. BCP (€bn)1 Comments 1 Sales of a few condominium units in Berlin as well as two multi- 5.7 5.7 family buildings were completed in Q1 2024, leading to a total 0.0 0.0 - reduction of GAV in the amount of c. €2m Thereof:
Slide 13: Development of EPRA LTV in Q1 2024
Development of EPRA LTV in Q1 2024 Interest expenses were the main driver of the increase in EPRA LTV in Q1 2024 EPRA LTV evolution (%) Comments 0.2% Interest expenses for Q1 2024 include both paid and accrued 0.4% 1 0.5% amounts (0.2%) (0.2%) 1.5% 99.1% (0.6%) 2 During Q1 2024, Adler Group spent €3
Slide 14: Financing Update
Financing Update 2024 bank maturities to be prolonged; Adler Group bond maturities to be extended and reprofiled until Dec-2028 and beyond NEW NOTES ISSUES REPAYMENTS UPCOMING MATURITIES ◼ On 26 February 2024, BCP issued a new series ◼ Repayment of the remaining outstanding ◼ Remaining 2024 maturiti
Slide 15: Overview of Debt KPIs as per March 2024
Overview of Debt KPIs as per March 2024 As per Q1 2024, the weighted average cost of debt amounts to 6.3% Debt KPIs as per Mar-2024 incl. BCP Sources of funding incl. BCP Restructuring security package - 2L4 Total nominal interest-bearing debt (€m)1 6,487 Secured bank debt 25.7% EPRA LTV2 99.1% 25.7
Slide 16: Debt Maturity Schedule – pre recapitalisation transaction
Debt Maturity Schedule – pre recapitalisation transaction 2024 maturities refer to asset-linked secured bank financing; prolongation talks are in advanced stages Overview of debt maturities1 incl. BCP (€m) Comments The vast majority of 2024 maturities 4% 37% 29% 9% 4% 14% 4% refers to asset-linked b
Slide 17: Development of Cash Position – Changes during Q1 2024
Development of Cash Position – Changes during Q1 2024 Cash position slightly decreased primarily driven by capex funding requirements and advisory fees Cash position excl. BCP (€m) (5) 20 (16) 377 1 15 (34) 353 (23) 3 9 (11) 16 1051 4 | Financial Update 231 Dec-23 Operating Disposals Disposals Repay
Slide 18: Guidance and Concluding Remarks
5 Guidance and Concluding Remarks 18
Slide 19: Guidance and Concluding Remarks
Guidance and Concluding Remarks Adler Group’s operations continue to develop positively, while the reprofiling of financial maturities extends the runway for orderly disposals of assets Full-year 2024 guidance Concluding remarks The rental business continued to develop positively during the first qu
Slide 20: Q&A
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Slide 21: Appendix
Appendix 22-23 Portfolio & Operational Performance 24-30 Financials 31-33 Debt Overview 33-34 Development Projects 35 Corporate Governance 36 Corporate Agenda 21
Slide 22: Breakdown of the like-for-like Rental Growth and CPI-linked rent
Breakdown of the like-for-like Rental Growth and CPI-linked rent Berlin L-f-L as per March 2024 (%) Other cities L-f-L as per March 2024 (%) Consumer price index (CPI) linked leases as per March 2024 (%) Without CAPEX CAPEX Without CAPEX CAPEX Based on units Based on NRI +7.4% +5.8% 5.0% 5.5% 2.6% 3
Slide 23: CAPEX and Maintenance in 3M 2024 in the Yielding Asset Portfolio
CAPEX and Maintenance in 3M 2024 in the Yielding Asset Portfolio CAPEX and maintenance (€m) Maintenance expense (€/sqm) CAPEX invested (€/sqm) 39 6.0 16.1 11 29 1.8 2.0 10 9 3.9 3.2 3 3 7 5 FY 2023 3M 2023 3M 2024 FY 2023 3M 2023 3M 2024 FY 2023 3M 2023 3M 2024 Maintenance CAPEX Appendix 23 General
Slide 24: Profit and Loss Statement
Profit and Loss Statement P&L statement Comments In € million Q1 2024 Q1 2023 1▪ Compared to Q1 2023, net rental income slightly decreased due to the disposal of the Net rental income 51 1 53 “Wasserstadt” portfolio in August 2023, and the Hamm portfolio by BCP in December 2023. The Income from faci
Slide 25: Adj. EBITDA Rental and FFO
Adj. EBITDA Rental and FFO 1 Adj. EBITDA Rental and FFO 1 calculation Comments In € million Q1 2024 Q1 2023 ▪1 Income from rental activities and NOI was stable as the negative effect from the decrease in Net rental income 51 53 rental units following portfolio disposals in 2023 was compensated by th
Slide 26: Adj. EBITDA Total and FFO
Adj. EBITDA Total and FFO 2 Adj. EBITDA Total and FFO 2 calculation Comments In € million Q1 2024 Q1 2023 ▪1 Income from property development includes revenue recognition from forward sales and condo Income from rental activities 78 80 sales. Due to the reduced number of projects in the pipeline, as
Slide 27: Balance Sheet
Balance Sheet Balance sheet Comments In € million Mar-2024 Dec-20231 ▪1 Investment properties remain almost unchanged due to the lack of disposals and no portfolio Investment properties including advances 4,915 1 4,911 revaluation done in Q1 2024 Other non-current assets 262 2 274 ▪2 Other non-curre
Slide 28: EPRA NAV Metrics
EPRA NAV Metrics EPRA NAV metrics calculation In € million, except per share data Mar-20242 Dec-20231,2 EPRA NAV metrics NAV NRV NTA NDV NAV NRV NTA NDV Total equity attributable to owners of the Company (314) (314) (314) (314) (229) (229) (229) (229) Revaluation of inventories 0 0 0 0 5 5 5 5 Defer
Slide 29: EPRA LTV - Methodology
EPRA LTV - Methodology EPRA LTV calculation as of March 2024 Comments Proportionate consolidation ▪ The main objective of EPRA’s LTV metric is to Group as Share of joint Share of material Non-controlling provide clarity on and assess the gearing of the In € million reported ventures associates inter
Slide 30: EPRA LTV - Overview
EPRA LTV - Overview EPRA LTV Comments In € million Mar-2024 Dec-20231 1 Total interest-bearing debt of €6,050m remained stable compared to the Dec-2023 value of Borrowings from Financial Institutions 2,292 1 2,259 €6,051m Commercial paper – – Hybrid instruments – – 2 Net payables are defined in acco
Slide 31: Breakdown of Debt Maturities per March 2024
Breakdown of Debt Maturities per March 2024 Nominal amount (€m) IFRS (€m) Maturity Nominal interest rate ADLER Real Estate Bonds SSNs 2018/26 300 293 27 Apr 26 3.00% Total 300 293 2.1 years 3.00%3 BCP Bonds Debenture B 5 5 31 Dec 24 4.04% Debenture C 97 98 20 Jul 26 4.05% Debenture D 91 89 1 Feb 291
Slide 32: Capital Structure (excl. Intercompany Loans) per March 2024
Capital Structure (excl. Intercompany Loans) per March 2024 Repaid as per date of this presentation ADLER Real Estate GmbH – Capital structure Consus Real Estate AG – Capital structure Adler Group S.A. (standalone) – Capital structure In € million Amount O/S Maturity Interest In € million Amount O/S
Slide 33: Upfront Sale Projects
Upfront Sale Projects Continued progress in disposals despite difficult market conditions Actual Remaining Building Construc. Land plot Area # Project name Entity City Zoning CAPEX 3M CAPEX permit started (k sqm) (k sqm) 20241 (€m) 9M 20241 (€m) 1 Offenbach project2 Consus Offenbach ✓ ✓ ✓ 32 88 2 4
Slide 34: Forward Sale and Condominium Projects
Forward Sale and Condominium Projects Majority of projects to be completed and handed over by 2025 Total remaining Actual Remaining Construc. Building Construc. Land plot Area GAV1 GDV1 # Project name Entity City Zoning construc. CAPEX 3M CAPEX 9M period permit started (k sqm) (k sqm) (€m) (€m) CAPE
Slide 35: Corporate Governance – Shareholder Composition
Corporate Governance – Shareholder Composition Adler Group’s shareholder composition1 Vonovia 15.9% Taconic Capital 5.0% Advisors 79.1% Free Float Appendix 35 1. According to the official notifications received from the shareholders
Slide 36: Corporate Agenda
Corporate Agenda Adler Group S.A. financial calendar 2024 Investor relations contacts 25 June 2024 Annual General Meeting 2024 Gundolf Moritz Head of Financial & Corporate Communications 29 August 2024 Publication Q2 2024 Results g.moritz@adler-group.com Publication Annual Report 2022 and 2023, 30 S
Slide 37: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This presentation (“Presenta